Australian Tax Brackets 2024-25
Understanding Australia's progressive tax system and current income tax rates for the 2024-25 financial year.
Current Tax Rates for Australian Residents
Source: ATO Individual Income Tax Rates 2024-25
| Income Range | Tax Rate | Tax on Income | Example: $75,000 |
|---|---|---|---|
| $0 - $18,200 | 0% | Nil | $0 (on first $18,200) |
| $18,201 - $45,000 | 16% | 16% of excess over $18,200 | $4,288 (on $26,800) |
| $45,001 - $135,000 | 30% | $4,288 + 30% of excess over $45,000 | $9,000 (on $30,000) |
| $135,001 - $190,000 | 37% | $31,288 + 37% of excess over $135,000 | - |
| $190,001 and above | 45% | $51,638 + 45% of excess over $190,000 | - |
Example Calculation: On a $75,000 salary, you would pay $13,288 in income tax ($0 + $4,288 + $9,000) before offsets and other deductions.
Non-Resident Tax Rates
Foreign residents (non-residents for tax purposes) pay different rates and don't receive the tax-free threshold:
Source: ATO Non-Resident Tax Rates 2024-25
| Income Range | Tax Rate |
|---|---|
| $0 - $135,000 | 30% |
| $135,001 - $190,000 | 37% |
| $190,001 and above | 45% |
Key Changes for 2024-25
Tax Cuts Delayed
The Stage 3 tax cuts originally scheduled for 2024-25 have been modified. The current brackets remain in place with some adjustments to rates.
LMITO Extended
The Low Income Tax Offset provides up to $700 for eligible taxpayers earning up to $66,667. [ATO LITO Guide]
How Progressive Tax Works
Australia uses a progressive tax system, meaning:
- Only the income in each bracket is taxed at that bracket's rate
- Lower income is taxed at lower rates - everyone gets the benefit of the tax-free threshold
- Higher earners pay more but only on income above each threshold
Example: $50,000 Income
- $0 - $18,200: $0 tax
- $18,201 - $45,000: $4,288 tax (16%)
- $45,001 - $50,000: $1,500 tax (30%)
- Total tax: $5,788
Example: $100,000 Income
- $0 - $18,200: $0 tax
- $18,201 - $45,000: $4,288 tax (16%)
- $45,001 - $100,000: $16,500 tax (30%)
- Total tax: $20,788
Additional Taxes & Levies
Calculate Your Tax
Use our free calculator to work out your exact tax liability based on these brackets.
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